Chile Risk Premium Jumps From Seven-Year-Low as ‘Reality Bites’

Economic problems are piling up for Chile’s President-elect José Antonio Kast even before he takes office on March 11, damping the market euphoria that had accompanied his victory.

A wider-than-expected budget deficit, weaker growth and now soaring oil prices have combined to push up the cost of insuring Chilean debt against default over the next five years by over 14 basis points from a seven-year low a month ago.